Good news for renters, maybe not so much for landlords – London rents have dropped for the second quarter in a row, according to figures from SpareRoom. While it might seem like a sign of things to come, there’s still a long way to go before things get truly affordable.

Rents Still Up, But Slowly

Let’s break it down. While rents are down for the second quarter in a row, they are still up by 1% year-on-year. Areas like Mortlake saw a 9% drop, while Holland Park and Kentish Town saw a 7% decrease. But this may be just a blip on the radar.

Across the UK, rents have jumped by nearly a third (29%) since 2021, with the average rent hitting £740 per month. That’s a big increase, and it’s something that’s really putting pressure on people’s budgets.

Why Are Rents Dropping?

The rental market is starting to level out a bit. There’s more supply out there now, and demand has dipped from its 2022 peak. But it doesn’t mean the rental crisis is over.

What Does This Mean For Landlords?

This news isn’t exactly a cause for celebration. The rental market is cooling down, but the high costs of living and the shortage of homes are still driving up rents. The new government has promised to tackle housing issues, but only time will tell if they can make a real difference.

London Still A Rental Hotbed

Even with the recent drops, London rents are still sky-high. Kingston upon Thames leads the pack with an average rent of £898 per month, followed by Twickenham at £889 and Reigate at £845.

Outside London

While London is seeing a slight dip, the rest of the UK is still seeing significant rent increases. Warrington saw the biggest jump in the past year at 15%, followed by Bolton at 14% and Southend-on-Sea at 13%.